Executive Summary

InterOil Corporation is developing an Integrated Oil and Gas Company in Papua New Guinea. The Company has positioned itself to own assets through the entire value chain - from the well-head to retail. InterOil has also positioned itself through a joint venture holding company to develop a LNG project in Papua New Guinea. The joint venture company is targeting 2013/2014 for the delivery of 'first gas'.

Upstream

InterOil's exploration asset portfolio is one of the largest held by a single company and comprises approximately 4 million acres operated and 4.6 million total, with four discovery's. We currently have four exploration licenses in Papua New Guinea. Our principal licenses, Petroleum Prospecting Licenses 236, 237 and 238 are located in the Eastern Papuan Basin northwest of Port Moresby. We control 100% working interest in them, and our current exploration efforts are focused on, these three licenses. Our indirect participation interest investors have the right to a 26.34% working interest in the exploration wells currently being drilled and any resulting fields. In addition, we own a 15% working interest in Petroleum Prospecting License 244, located offshore in the Gulf of Papua.
 
Some recent accomplishments since inception:

•	Identified two new oil and gas systems.
•	Identified two distinctive sandstone reservoirs - (Pale and Subu sandstones).
•	Identified three new limestones - (Puri, Mendi and a Reefal limestone).
•	We have acquired several thousand miles of seismic, magnetic and airborne surveys over our prospective license areas.
•	Our Elk-1 gas discovery in 2006 recorded the highest gas flow in Papua New Guinea history, with a gas and condensate flow rate over 100 Million SCF/day. This record has subsequently been surpassed by the InterOil Antleope-1 discovery well.
•	We drilled the Elk-4 appraisal well in 2008 where the well was tested at 86 million standard cubic feet (mmscf) per day.
•	The Antelope-1 gas/condensate discovery well which commenced drilling in October 2008 targeting a gas column in the Elk/Antelope structure, was flowed at 382 Million SCF/day with 5,000 barrels of condensate per day (BCPD) for a total 68,700 barrels of oil equivalent per day (BOEPD), setting a new record rate for the country of Papua New Guinea. (see press release dated March 2, 2009 for further information; http://www.interoil.com/press.asp As far as we are aware, the world record breaking gas flow rate from a vertical well confirms other records recently established by the well, such as the largest vertical hydrocarbon column height in a single onshore carbonate reef structure and the largest calculated absolute open flow (CAOF) at 17.7 Billion cubic feet of natural gas per day.
•	The Antelope-2 appraisal well is currently being drilled and is expected to reach total depth in the fourth quarter 2009.
•	From the four wells drilled in the Elk/Antelope structure, three of the discovery wells (Elk-1, Elk-4 and Antelope-1) have recorded prolific gas/condensate flow rates.

Midstream Assets

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InterOil built and owns a Commercial Oil Refinery capable of processing 36,000 barrels per day. The refinery has a large enough processing capacity to meet the current and predicted demand for petroleum products in Papua New Guinea. The refinery is configured to take advantage of the light sweet crude available in-region and so avoids the need for hydrotreating or complex and expensive heavy oil processing such as catalytic cracking and coking. The refinery thus consists of only atmospheric distillation plus a modest catalytic reformer for production of gasoline blendstock i.e. an ultra-simple hydroskimming complex.

•	Currently operating below optimal capacity provides significant opportunities for growth in and around the surrounding region.

•	Crude oil supply contract with BP Singapore and refined product sales contracts with Royal Dutch Shell.

Downstream

•	InterOil is the largest distributor of refined products in Papua New Guinea and distributes under its branded name InterOil Products Limited.

•	The InterOil distribution business has grown through the acquisition of distribution assets previously owned and operated by BP and Shell in Papua New Guinea.

 
InterOil Products Limited owns and operates:

	Distribution depots
	Seaboard Terminals
	Trucking Systems, and
	A comprehensive retail network
	Aviation Refueling Facilities

Disclosures

InterOil Code of Business Conduct

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